Glossary
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A C D E G M N R S T V
A
Apply funds
Where a society spends its net proceeds directly on the society’s own authorised purpose. Clubs mostly apply funds to their own services and activities. This is differentiated from “distributing funds” – see below for the relevant definition.
Authorised Purpose
A charitable or non-commercial purpose that is beneficial to the whole or a section of the community and promoting, controlling, and conducting race meetings including payment of stakes.
These are the purposes for which societies can make grants. Different societies have different authorised purposes, but all must benefit the community. More information about Authorised Purposes.
C
Cap
A maximum number may be referred to as a “cap” on EGMs or venues. The cap may be for their whole district, specific zones, or ward by ward.
Class 4 (C4)
A distinct type of gambling that involves the use of EGMs which are located outside of casinos.
Gambling where the net proceeds are applied to or distributed for authorised purposes; where no commission is paid to, or received by, a person for conducting it; where it satisfies the relevant game rules; and it utilises a gaming machine.
Clubs
Voluntary association of persons combined for a purpose other than personal gain. The net proceeds from a club’s gaming machine operation are spent on the club’s “authorised purpose”, such as club facilities and member services. Some clubs may also choose to distribute their gaming proceeds as grants to community organisations.
If a club operates EGMS, it must hold both an operator licence and a venue licence.
Community or Communities
The beneficiaries of grants from class 4 and other modes of gambling. Thousands of grants to community groups, schools, sporting organisations and other beneficiaries are made each year from class 4 alone, as well as from other sources of gambling. Some grants are made to national bodies or sporting codes.
Continuous and Non-continuous gambling
The terms continuous and non-continuous gambling are used to differentiate between two main types of gambling activity that research suggests are associated with different risk levels for harm occurring (Abbott et al 2014a ; Abbott et al 2014b).
Continuous gambling activities are characterised by providing the opportunity for a repeated cycle of placing a stake, playing, determination of a win or loss, and the ability to collect and restake winnings. Examples include gambling machines, casino table games, betting on horse or dog races, and scratchy cards. These types of activities have been shown to be associated with higher risk levels of gambling harm.
Non-continuous gambling forms contrast with continuous forms in that there is a delay of many hours or days between placing a stake or buying a ticket and the determination of a win or loss. The most common examples are Lotto and raffles. Because the gambling behaviour is non-continuous, the risk of harm occurring is lower.
D
Distribute Funds / Grants Distribution
A society distributing funds to grant recipients in the community.
Where a society makes a grant to another person for that person to spend on an authorised purpose
E
Electronic Gaming Machines (EGMs)
Pokie machines, also called gaming machines, slots and/or poker machines.
G
Gambling
The Gambling Act defines gambling as—
(a) means paying or staking consideration, directly or indirectly, on the outcome of something seeking to win money when the outcome depends wholly or partly on chance; and
(b) includes a sales promotion scheme; and
(c) includes bookmaking; and
(d) includes betting, paying, or staking consideration on the outcome of a sporting event; but
(e) does not include an act, behaviour, or transaction that is declared not to be gambling by regulations made under section 368
Gambling Harm
‘Gambling Harm’ as defined as in the Gambling Act 2003 is: ‘Harm or distress of any kind caused or exacerbated by a person’s gambling and includes personal, social or economic harm suffered by the person, their spouse, partner, family, whānau and wider community, or in their workplace or society at large.’
This definition aligns with a broad public health approach to thinking about the harm that can arise from gambling.
Gaming Machine Proceeds (GMP)
Also known as Gaming Machine Profits or Player Losses. GMP = Turnover – prizes – jackpots + adjustments.
The Electronic Monitoring System determines GMP by collecting and analysing daily meters from each and every gaming machine. The venue must bank this amount or make an adjustment.
Adjustments is any correction claimed and entered into EMS by the society due to any malfunction by the gaming machine or EMS.
Grant Recipient
A non-profit organisation that receives grants from a society/societies.
M
Minimum rate of return
This is the minimum amount of proceeds that a licence holder must distribute for authorised purposes and is currently equivalent to 40 per cent of GST exclusive gross proceeds per financial year
N
Net Proceeds
The amount remaining to be distributed to authorised purposes after costs, levies and taxes have been deducted from a society’s GMP and any interest or earnings from investment or sale of asset.
The amount remaining to be distributed to authorised purposes, which is calculated by taking a society’s gambling turnover (less prizes) and adding interest or other investment return, and any gains from the sale of gambling assets above their book value, then deducting costs, levies and taxes, asset depreciation and any loss from selling or disposing of gambling assets below their book value
R
Region
A geographic area comprising a number of Territorial Authorities. There are 16 Regions in New Zealand.
S
Sinking Lid
Councils may also choose to adopt a “sinking lid” policy, for venues or machines or both. This means that once a class 4 gambling venue closes down and leaves the market, or the number of machines licenced to operate in a community decreases for any reason, councils will not issue any other society a licence to replace that venue or those machines. A license expires after a period of six months of the license not being used (Section 98(b)). After this period a consent will be required.
Society
Also called corporate societies, gaming machine societies, gaming societies or Class 4 societies, and are sometimes referred to as trusts or pokie trusts. The societies operate their EGMs out of venues and must distribute their net proceeds to authorised purposes.
T
Territorial Authority
A District or Council area. There are 67 Territorial Authorities in New Zealand.
V
Venues
These are the pubs and other venues where gaming machines are located. They do not own the machines and must not be involved in decisions about who can apply for grants, who receives them or how much the grant should be.
